Xingmin Steel rim and Futian automobile deepen strategic cooperation

Xingmin steel Rims (002355) co-Fukuda Auto (600166) December 20 signed a strategic cooperation framework agreement in Beijing.　　According to the bulletin, in Xingmin Steel rim and Foton for many years of cooperation on the basis of this Agreement to facilitate the integration of the resources of both sides, and further promote and deepen the close cooperation between the two sides to ensure that the future of xingmin steel rims in the supply share of Futian automotive stability, conducive to long-term development and strategic depth The establishment of a lasting price and quality mechanism agreement covers a number of aspects including localization, quality, cost and so on. Localization, the agreement requires Xingmin Steel rim should be completed in December 2011 ago, Hunan Changsha and Hebei Yutian Iron Wheel production base of the construction and production, the two base production scale is not less than 5 million pieces per year capacity, its product specifications and performance should meet Fukuda needs and future planning needs of the entire vehicle.　　And Fukuda car will be in accordance with xingmin steel wheel production progress, timely completion for the Fukuda Automotive products production parts approval process. Quality, xingmin steel rim should strive to achieve the various agreements of Futian automobile parts quality objectives, to ensure that the level of quality of parts and components improved yearly, with the Fukuda automotive quality improvement activities.　　On this basis, Fukuda will give the xingmin steel wheel product admission exemption, but not excluding hing-min steel rim bear the responsibility for the quality of parts and components. In terms of cost, xingmin steel rim should continuously reduce the cost of parts and components, take the lead to provide continuous reduction and meet the target price requirements of the spare parts, and to Futian automobile transparent financial situation, with the financial risk of Futian automobile investigation, to provide product reasonable profit and lower than for the Futian automobile competitors to provide the price　　Fukuda car gave Xingmin steel rims a certain range of concessions, and promised to establish a stable and lasting price and xingmin steel rim mechanism, do not encourage vicious competition. Sharing information and globalization resources product development, the agreement requires Xingmin Steel rim to complete the new product development task arranged by Foton, and actively coordinate and promote the use of advanced parts of Futian automobile industry. Xingmin Steel RIM actively participates in the concurrent development of Futian automobile, Fukuda Automobile uses xingmin rim to develop new products or patented products. Xingmin Steel RIM was established in 2012 by the state-approved National automobile Rims Inspection Center laboratory. Fukuda will endorse the lab's test report and no longer arrange for third-party testing.　　Fukuda Auto will xingmin steel rims as a product of the synchronous development of suppliers, Xingmin tire mature products listed as the first development supplier. In terms of orders, Fukuda is committed to manufacturing in the next five years or in joint ventures with other suppliers to produce and xingmin steel rim products competing parts, Xingmin Steel rim promised to be the main supply of Foton automobile Depot. Xingmin Steel Rim actively introduce and establish order guarantee system, improve the information management level of enterprises, ensure that the brand can cover 100% varieties of supply. Fukuda Car steel rims for the xingmin has been the bulk supply of the steel rim products in principle to give not less than 70% of the supply ratio, and encourage xingmin rims on the Foton automobile multi-brand product expansion, in the new productsFukuda to meet the quality, cost, delivery and other requirements, the proportion of supply gradually reached 70% and above. In the area of synergy and information sharing, the high-level visits between the two sides are not less than two times a year, timely communication strategic planning and all kinds of information and mutual confidentiality. In terms of globalization, Fukuda automotive export products are preferred to use xingmin rims products, supporting and cooperating with the global production layout of Hing min steel rim. Xingmin steel rims in line with the sales of Futian automotive products overseas after-sales service.